contribution margin

(redirected from Contribution Margins)

Contribution margin

The difference between variable revenue and variable cost.

Contribution Margin

The profit a company makes on a product calculated by subtracting its variable revenues from its variable costs. Because variable revenues and costs are largely dependent on the business cycle, a company with a high contribution margin is likely to have an even higher margin during economic expansion.

contribution margin

The price at which a firm sells its product less the variable cost of producing the product. A company with a large contribution margin is likely to experience substantial profit increases during an economic upswing.
References in periodicals archive ?
In terms of our bottom-line results, year-over-year contribution margins exceeded our plans in all three business segments with solid growth in total EBITDA, EPS and Free Cash Flow driven primarily by strong performance in our Gourmet Foods and Gift Baskets and BloomNet segments.
Increased Contribution Margins driven by positive rate case outcomes, customer growth in our distribution segment and higher margins in our pipeline and storage segment were offset by lower consumption, higher operation and maintenance and depreciation expenses in the current-year quarter.
"Our intense focus on higher-margin strategic sales enhances both our competitiveness and contribution margins. At the end of the quarter, annualized strategic product revenue was $165 million, representing a 71 percent year-over-year growth rate.
"Continued healthy realisations and healthy recovery rates are likely to result in healthy contribution margins for UP-based mills, while the mills in Maharashtra and Karnataka may see an adverse impact on volume sales arising out of lower production, partly offsetting the benefit from rising sugar prices and the relatively stable cane costs," Majumdar said.
It will also improve the company's overall contribution margins.
The resulting effects on the contribution margins of the two products are shown in Figure 3.
The improvement in profit from operations, which rose by approximately [euro] 75 million to [euro] 505 million, was chiefly attributable to the increase in contribution margins as a result of higher sales.
As a result, CBD will be able to focus on projects in its current pipeline that have potential net contribution margins of over 10%.
GM delivers higher contribution margins than other higher-profile departments, and consumers are looking for GM to support their trip mission.
Key empirical questions concern the extent of variance across hospitals in costs, payments, and contribution margins for privately insured patients; the magnitude of the differentials for Medicare and privately insured patients; and the influence of local market structure on hospital economic performance.

Full browser ?